Call for export credit scheme

RENEWED calls have been made for a Government-backed export credit insurance scheme, as preliminary figures from the Central Statistics Office (CSO) show that the value of Irish exports fell by 6%, month-by-month in August and import values fell to a 10-year low.

The figures show a seasonally adjusted value of €3.55 billion in imports for August, representing a 4% monthly fall and a 10 year low. The 6% fall in export value – to €6.5bn – is the lowest level since December 2007. For the first seven months of 2009, exports increased by 2% to €51.3bn while import values fell 23% to €27.3bn.

Ireland’s trade surplus also took a dive in August – down from €3.25bn in July to €2.95bn.

The IBEC-affiliated Food and Drink Industry Ireland (FDII) said the absence of an export credit insurance scheme here (the EC has approved such a measure in a number of member states) is putting Irish exporters at a competitive disadvantage.

“The food and drink industry is as important to Ireland as the car industry is to Germany. The Government must act now to protect Ireland’s most important industry. Food and drink companies are suffering, with exports from the sector over the full year likely to be €1bn lower than 2008.

“The weakness of sterling is having a huge impact as 43% of food and drink exports go to Britain. While the currency risk cannot be removed, there are measures that the Government can take to support exports and help companies develop new markets and customers,” said FDII director, Paul Kelly.

Separate CSO figures detailing monthly factory gate prices showed a 0.5% monthly fall in September, bringing the annual fall to 3.5%.